Question
Find the ending balance in an account that opens with $6,000, earns 4.5% interest compounded quarterly, and is held for 10 years. (Round your answer to the nearest cent.)
Answers
Henry
Pt = Po(1+r)^n.
r=(4.5%/4) / 100% = 0.01125=Quarterly %
rate expressed as a decimal.
n = 4comp./yr * 10yrs = 40 Compounding
periods.
Pt = $6000(1.01125)^40 = $9386.26.
r=(4.5%/4) / 100% = 0.01125=Quarterly %
rate expressed as a decimal.
n = 4comp./yr * 10yrs = 40 Compounding
periods.
Pt = $6000(1.01125)^40 = $9386.26.